Dangote Refinery Aims For 650,000bpd By June, Plans Crude Imports

Dangote Refineries Will Create Massive Jobs - Aliko Dangote

The Dangote Petroleum Refinery is ramping up operations and plans to import crude oil to meet its production target of 650,000 barrels per day (bpd) by June 2025.

Currently producing 500,000bpd, the $20 billion Lekki-based refinery faces challenges in sourcing sufficient crude oil locally, as the Nigerian National Petroleum Company Limited (NNPC) struggles to provide the 350,000bpd allocated to it.

Officials at the refinery explained that while NNPC supplies part of the feedstock under the naira-for-crude arrangement introduced by President Bola Tinubu in 2024, additional crude imports are necessary to achieve full capacity.

“This is a 650,000bpd refinery, and meeting our production goals requires sourcing crude oil beyond Nigeria,” a source explained.

The refinery is recognized as one of the largest globally and is producing Euro 5 standard petrol, praised for its high quality and efficiency.

Naira-for-Crude Deal and Refining Capacity

As Nigeria’s refining capacity grows, the 450,000 barrels of crude allocated for domestic consumption has proven insufficient. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) estimates that the country’s functional refineries will require 770,500bpd in 2025.

The Dangote Refinery alone will need 550,000bpd, while other refineries, including the Port Harcourt, Warri, and Kaduna facilities, will require significant allocations to meet their production targets.

In 2024, President Tinubu initiated a naira-for-crude deal, allowing local refineries to purchase crude oil in naira. Initially, the policy applied solely to the Dangote Refinery but will extend to other refineries as they resume operations.

By April 2025, the Federal Government plans to review the program to assess its impact.

Expansion and Storage Plans

To address crude supply challenges, the Dangote Refinery is constructing eight additional storage tanks, increasing its crude storage capacity by 41.67% to 3.4 billion liters.

“Importing crude oil means we must maintain larger stockpiles to ensure uninterrupted operations,” said Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries.

The refinery’s expansion and crude import plans underscore its commitment to meeting domestic and international fuel demands, solidifying its position as a global refining powerhouse.